Bernstein Upgrades Four Key Bitcoin Miners to ‘Outperform’

Bitcoin Bitcoin Mining
Investment firm Bernstein upgrades four Bitcoin miners (Riot Platforms, CleanSpark, Iris Energy, Core Scientific) to "outperform," highlighting their expansion, efficiency, and AI strategies.
Last updated:
Editor
Editor
Veronika Rinecker
About Author

Veronika Rinecker is based in Germany, studied international journalism and media management. She specializes in politics and regulation, energy, blockchain, and fintech. Since 2017, she has been...

Last updated:
Why Trust Cryptonews
With over a decade of crypto coverage, Cryptonews delivers authoritative insights you can rely on. Our veteran team of journalists and analysts combines in-depth market knowledge with hands-on testing of blockchain technologies. We maintain strict editorial standards, ensuring factual accuracy and impartial reporting on both established cryptocurrencies and emerging projects. Our longstanding presence in the industry and commitment to quality journalism make Cryptonews a trusted source in the dynamic world of digital assets. Read more about Cryptonews

Investment firm Bernstein has made a bullish call on the Bitcoin mining sector, issuing “outperform” ratings for four publicly traded companies: Riot Platforms, CleanSpark, IREN (formerly known as Iris Energy), and Core Scientific.

These ratings indicate that Bernstein expects these stocks to outperform the broader market.

Meanwhile, according to the Decrypt article from Aug. 16, MARA (formerly known as Marathon Digital Holdings) received a “market-perform” rating, suggesting Bernstein anticipates performance in line with the market average.

Expansion and Efficiency Take Center Stage

Bernstein’s evaluation was based on five key factors: Bitcoin (BTC) production, operational efficiency, energy consumption, cost, and artificial intelligence (AI) strategy.

Bernstein highlighted Riot Platforms’ operational power capacity and ambitious expansion plans. Despite a broader industry slowdown in Bitcoin mining production, Riot reported strong Q2 2024 results, generating $70 million in revenue. The company expanded its operations with a new Texas facility, acquired Block Mining for $92.5 million, and increased its Bitfarms stake to 18.9%.

CleanSpark garnered praise for its top-notch energy efficiency and high realized hash rate, a key measure of actual mining performance.

Beyond Bitcoin

Bernstein expressed optimism regarding IREN’s expansion plans, including its two mega sites in Texas. Beyond Bitcoin mining, the company’s potential in the AI sector is also promising, according to analysts, as evidenced by its partnership with Morgan Stanley to explore AI opportunities.

Core Scientific also impressed analysts with its cost-efficiency and pioneering AI strategy. The report lauded the company’s “best in class” hashcost, attributed to “low power cost, uptime and controlled SG&A costs” (SG&A stands for Selling, General & Administrative expenses). Beyond cost efficiency, Core Scientific emerged as “a clear leader on AI strategy,” according to Bernstein.

Positive Outlook for Bitcoin Mining

While MARA received a “market-perform” rating, Bernstein acknowledged its strengths and the fact that the company has improved its uptime efficiency by moving to a self-mining model. Analysts also expect the firm to fully transition to its own mining sites to reduce reliance on hosting partners.

In terms of overall mining trends, the report predicts mining margins to improve in Q4 2024, potentially fueled by a potential Bitcoin bull run driven by institutional investment inflows into spot Bitcoin exchange traded funds (ETFs).

According to analysts, mining costs are expected to decline as companies like MARA deploy the latest generation of rigs for expansion, leading to improved efficiencies.

More Articles

Blockchain News
Japanese E-commerce Giant Mercari’s Crypto Exchange Revenues ‘Up x9’ on 2023
Tim Alper
Tim Alper
2024-11-06 23:30:00
Industry Talk
Pepe Coin Gets Robinhood Support – Will PEPE Soar Like Dogecoin? 
Joel Frank
Joel Frank
2024-11-06 22:15:01
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors